DFS slips to loss following weaker demand
Furniture retailer DFS has posted a 9.3% drop in annual revenue to £987.1 million after its performance was impacted by a decline in market demand and Red Sea shipping delays.
For the 53 weeks to 30 June, the company also reported a pre-tax loss of £1.7 million compared to a profit of £29.7 million in the prior year, although gross margin rate progression and operating efficiency cost savings partially offset the weaker market conditions.
Meanwhile, underlying PBTA from continuing operations fell to £10.5 million from £30.6 million.
Tim Stacey, DFS group chief executive officer said: “I want to sincerely thank all our colleagues for their enthusiasm and continued commitment to delivering a great service to our customers in what has been a very challenging period for the group given the market conditions.
“Despite the challenges that the business has seen, we are optimistic for the future and see signs that market growth could soon return.”
DFS said trading in the current financial year to date is in line with expectations with year-on-year order intake growth over the first 12 weeks.
It expects its market to gradually recover during the course of the year as the housing market and household disposable income improves.
Stacey added: “It is clear that the upholstery market has a long road to recovery given the 20% decline on pre-pandemic levels that we have seen.
“Despite the challenges we have faced, we remain confident that the business is well positioned to capitalise on market recovery.
“Given our strong market leadership position, the operational leverage in the business, our well invested asset base and negative working capital cycle we expect to deliver strong returns for our shareholders.”
